Protecting Your Portfolio: Top Dividend Stocks to Consider
As the market continues to experience volatility, investors are seeking ways to shield their portfolios from potential shocks. One strategy is to invest in dividend-paying stocks, which can provide a steady stream of income and help mitigate losses. But how do you choose the right dividend stocks?
Expert Insights
Top Wall Street analysts, with a proven track record of success, can offer valuable insights into the best dividend stocks. These experts analyze a company’s fundamentals, providing a comprehensive view of its potential.
Enterprise Products Partners: A Midstream Energy Leader
One top dividend pick is Enterprise Products Partners (EPD), a midstream energy services provider. With a high yield of 6.9%, EPD has a strong history of distributing dividends to its shareholders. The company’s recent Q3 results showed a 5% year-over-year increase in distributions, and its share repurchase program has enhanced shareholder returns.
RBC Capital analyst Elvira Scotto, ranked No. 20 among over 9,100 analysts tracked by TipRanks, reiterated a buy rating on EPD with a price target of $36. Scotto highlighted the company’s robust backlog of organic growth projects, which are expected to drive growth next year.
IBM: A Tech Giant with a Strong Dividend Yield
Another dividend stock to consider is IBM (IBM), which recently reported mixed Q3 results. While earnings exceeded estimates, revenue fell short of expectations. However, the company generated $2.1 billion in free cash flow and returned $1.5 billion to shareholders through dividends. IBM stock offers a dividend yield of 3.1%.
Evercore analyst Amit Daryanani, ranked No. 316 among over 9,100 analysts tracked by TipRanks, reaffirmed a buy rating on IBM stock with a price target of $240. Daryanani highlighted the company’s strong Software business, its growing artificial intelligence capabilities, and its ability to grow profits at a higher rate than revenue.
Ares Capital: A Specialty Finance Company with an Attractive Yield
Finally, let’s look at Ares Capital (ARCC), a specialty finance company that provides financing solutions to private middle-market companies. ARCC recently reported solid Q3 results, driven by strong new investment activity and healthy credit performance. The company announced a dividend of 48 cents per share for the fourth quarter, payable on Dec. 30. ARCC stock offers a dividend yield of 8.9%.
RBC Capital analyst Kenneth Lee, ranked No. 34 among over 9,100 analysts tracked by TipRanks, reaffirmed a buy rating on ARCC and slightly raised the price target to $23. Lee highlighted the company’s solid credit performance, improved portfolio activity, and scale advantages.
These top dividend stocks, recommended by leading Wall Street analysts, can help you build a resilient portfolio and generate a steady income stream. By investing in companies with a strong history of dividend payments, you can better navigate market volatility and achieve your long-term financial goals.
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